Whether an illiquid asset is transferrable, depends entirely on the external party responsible for managing the asset (eg Share Registry, Fund Manager, Administrator, etc). The requirements to transfer an illiquid asset will differ for each asset.
To determine if an illiquid asset is transferrable, please contact us using Live chat in Adviser Online. From there, our teams can assist with determining if an asset is available to be transferred, and if available, the requirements to do so.
Super and Pension Accounts:
- If your client holds insufficient unrestricted funds (ie if value of asset is greater than amount of unrestricted funds in the account), they are only able to transfer the asset to be held with another superannuation platform/custodian (if they will accept the asset) or in the name of an SMSF (given they are a member of one). If this isn’t possible, the asset is treated as non-transferable.
- If the client holds sufficient unrestricted funds (ie if value of asset is smaller than amount of unrestricted funds in the account) then they can transfer the asset to be held directly with the fund manager.
- If transferring to an external platform/Super fund it's up to the external platform/custodian's discretion as to whether they are willing to accept an illiquid asset on their platform.
If the suspended asset is non-transferable then the asset will have to be retained in the client’s account and the account can't be fully closed. In this instance, we'll waive cash and product minimums, transfer out all available cash and finally reduce fees to nil. This can only occur if all avenues to transfer the asset are exhausted.